The budget of the Indian government is an important document that details all of the expenditures, revenue collection, and development plans of the government for the current financial year. Every year, the budget is presented by the Finance Minister in the Indian Parliament, and it provides the basis for the allocation of resources for the country‘s economic and social welfare. Each year, the budget also contains announcements, initiatives, and measures taken to improve the existing fiscal and economic foundations in the country.
In the recent years, the Indian government has come up with some unique initiatives and measures in its budget to spur development and growth in the economy. Some of the unique things in Indian government budget are as follows:
1. Direct Tax incentives to boost the IT industry: In order to spur economic growth and development in the IT sector, the Indian government has announced a special direct tax benefits in the form of special financial incentives and tax exemptions to investors and innovators in the IT sector. This initiative is aimed at building an environment of competitiveness, innovation, and entrepreneurship in the tech space.
2. Transfer of unused funds from government schemes to the PM CARES Fund: To address the health crisis caused due to the coronavirus, the government has announced a special provision for the transfer of unused funds from various government–run schemes to the Prime Minister’s Citizen Assistance and Relief in Emergencies (PM CARES) Fund. This move will allow for faster and more efficient provision of emergency assistance to those affected by the crisis.
3. Liability on Shipping Companies to set up Free Ports: In order to boost the maritime economy of the country, the government announced a special deficit liability on major domestic and international shipping companies. The liability requires these companies to set up Free Ports in order to facilitate import and export activities. The move aims to provide an infrastructure that is conducive to the growth of commerce in the maritime sector.
4. ReliefPackage for Farmers: In order to help farmers affected by the coronavirus pandemic, the government has announced a special package of direct and indirect financial assistance to farmers. This includes cash transfers and exemption from crop loan repayment obligations. The move is aimed at providing immediate relief to farmers from the economic impact of the pandemic.
5. Relief Package for Micro, Small & Medium Enterprises: In order to help revive the MSME sector, the government has announced a package of direct and indirect support. This includes liquidity infusion through soft loans, tax exemptions, and deferment of certain payments. The measure is aimed at stabilizing the MSME sector and aiding its recovery.
6. Special Package for Health Services: In order to address the health crisis posed by the coronavirus pandemic, the government has announced a special package of financial assistance and tax concessions to healthcare services. This includes direct funding to health institutions, exemption of medical supplies and equipment from import duties, and the provision of special research grants for health institutions.
These are some of the unique things in the Indian government budget that aim to address the vulnerabilities in the economy and spur its revival in the current economic scenario. These initiatives will undoubtedly boost the prospects for economic recovery and growth in the country, and therefore should be implemented in earnest.
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Disclaimer: “Neither this article nor the information contained herein shall in any way be construed as forming a contract or shall constitute professional advice required before acting upon any matter. CA Sharad Kumar Sharma has taken all due care in the preparation of this article for accuracy in its contents at the time of publication. However, no liability shall be accepted by him in the event of any direct, indirect or consequential damages arising out of or in any way connected with the use of this article or its contents.”
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